Correlation Between Stifel Financial and Thunder Bridge
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Thunder Bridge at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stifel Financial and Thunder Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Thunder Bridge Capital, you can compare the effects of market volatilities on Stifel Financial and Thunder Bridge and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Stifel Financial with a short position of Thunder Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Thunder Bridge.
Diversification Opportunities for Stifel Financial and Thunder Bridge
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stifel and Thunder is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital and Stifel Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Stifel Financial are associated (or correlated) with Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Stifel Financial i.e., Stifel Financial and Thunder Bridge go up and down completely randomly.
Pair Corralation between Stifel Financial and Thunder Bridge
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 3.12 times more return on investment than Thunder Bridge. However, Stifel Financial is 3.12 times more volatile than Thunder Bridge Capital. It trades about 0.18 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about 0.34 per unit of risk. If you would invest 10,349 in Stifel Financial on August 26, 2024 and sell it today you would earn a total of 1,273 from holding Stifel Financial or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Thunder Bridge Capital
Performance |
| Timeline |
| Stifel Financial |
| Thunder Bridge Capital |
Stifel Financial and Thunder Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Thunder Bridge
The main advantage of trading using opposite Stifel Financial and Thunder Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Thunder Bridge can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thunder Bridge will offset losses from the drop in Thunder Bridge's long position.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| Thunder Bridge vs. PowerUp Acquisition Corp | Thunder Bridge vs. Aurora Innovation | Thunder Bridge vs. HUMANA INC | Thunder Bridge vs. Aquagold International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |